After the death of QuadrigaCX’s CEO, one hundred and thirty-seven million United States Dollars ($137m) were said to be missing. Gerald Cotten, founder and CEO of a crypto exchange, QuadrigaCX, was thought to have had sole access to all the funds and coins exchanged on the platform.
Cotten’s sudden death in December 2018 led to the loss of such a huge amount of money belonging to 115,000 customers. His colleagues explained that the humongous amount of money was held offline in “cold storage”. They could not be accessed by anyone except Cotten.
Since this became public, the case has generated a lot of controversies with many people making some theoretical claims. Part of these is that Cotten faked his own death and ran away with customer’s money.
Meanwhile, an auditor appointed by the court, Ernst & Young, has secured Cotten’s home computer, laptop, and USB keys. Through this, experts found Cotten’s digital wallet. According to the report given by the auditor last week, the digital wallets thought to have contained millions of dollars were emptied as far back as April 2018, eight months before Cotten’s death.
“In April 2018, the remaining bitcoin available in Identified Bitcoin Cold Wallets was transferred out. This brought the balance down to nil,” the report said.
Aside from this, investigators also reported other issues found in the course of the investigation. They said other issues they found include the fact that Quadriga kept only “limited books and records” whose financials were never reported.
The audit firm also reported that 14 different user accounts were created internally with different pseudonyms. The accounts traded on Quadriga’s exchange but withdrew coins to addresses that have no ties with Quadriga.
What Next For QuadrigaCX?
Due to the burden created by this debt and money owed customers, Quadriga had filed for creditor protection in late January 2019. The company got a green light from a Novia Scotia court which granted it a 45-day extension. This prevents creditors from filing any lawsuit against the company until mid-April, 2019. Initially, Cotten’s widow had sought repayment to support the crypto exchange. Meanwhile, in a bid to get more information about the whereabouts of Quadriga’s cash, another crypto exchange, Kraken, is offering $US100,000 to anyone with fruitful information.
Can the money ever be recovered or can we say Quadriga’s money is gone forever? Make you comment.